Senate May Take Swipe at Caps on Debit-Card Fees

A debit-card fee ceiling that banks hate and retailers love has drawn so much criticism from both sides of the Senate it is increasingly likely to be modified, if not repealed, The Wall Street Journal reports. Sen. Jon Tester, D-Mont., said he has enough votes to delay the new rule limiting what debit-card issuers can charge retailers for every swipe of a debit card at the cash register.

Barney Frank
(Getty photo)

Similar sentiment is building in the House. Even Rep. Barney Frank, D-Mass., says he supports changing the debit-card processing fee restrictions that have become part of the Dodd-Frank financial reform law.

Dodd-Frank caps the fee at 12 cents a swipe, less than half the 44 cents banks currently charge retailers on average. The cap was added by Sen. Dick Durbin, D-Ill., who opposes any effort to delay or rewrite the measure.

A debit-card fee ceiling that banks hate and retailers love has drawn so much criticism from both sides of the Senate it is increasingly likely to be modified, if not repealed, The Wall Street Journal reports. Sen. Jon Tester, D-Mont., said he has enough votes to delay the...